Reports related to this article:
Project(s): View 4 related projects in PECWeb
Plant(s): View 4 related plants in PECWeb
Released November 09, 2017 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--DowDuPont Incorporated (NYSE:DWDP) (Midland, Michigan, and Wilmington, Delaware) plans to eliminate jobs and consolidate or close some facilities in an effort to save $3 billion. Industrial Info is tracking more than $3.5 billion in active DowDuPont projects, including about $2 billion worth that are under construction.
In the U.S. Midwest, DowDuPont plans to find a buyer for its cellulosic ethanol biorefinery in Nevada, Iowa. DowDuPont and subsidiary DuPont Pioneer (Johnston, Iowa) opened the $225 million Johnston Plant Genetics R&D (research and development) facility in 2015. The plant was intended to be the world's largest producer of cellulosic ethanol created from stover, the material left over after harvesting corn and soybeans. DowDuPont has shuttered operations and laid off at least 90 workers. For more information, see Industrial Info's report on the Johnston plant.
The biorefinery closure was part of the company's third-quarter earnings announcement on November 2. DowDuPont will cut its global workforce by 5 to 7%, suspend operations at select buildings and plants, and centralize purchasing.
"It's just not going to be core to our future," said Ed Breen, chief executive officer, in a press release.
The cost-savings push comes as Dow Chemical Company (Midland, Michigan) and E.I. du Pont de Nemours and Company (DuPont) (Wilmington, Delaware), whose $130 billion mega-merger closed August 31, seek to separate into three independent, publicly traded units focused on agriculture, materials and specialty products. For more information, see Industrial Info's September 5, 2017, article - After Merger, What's Next for DowDuPont?
Of the $3.5 billion in DowDuPont projects under construction globally, Industrial Info is tracking $1.9 billion in project activity in North America - nearly all in the U.S. - and roughly 75% of which can be found in the Chemical Processing, Metals & Minerals and Pharmaceutical & Biotech industries. Of the U.S. investments, Louisiana and Texas dominate, with six projects valued at just more than $1.7 billion.
In September, DowDuPont started up two key petrochemical-processing units at its operations in Freeport, Texas: its integrated 1.5 million-metric-ton-per-year (T/yr) ethylene production facility and its 400,000-metric-T/yr ELITE enhanced polyethylene production facility. Industrial Info has tracked the ethylene unit project since 2011 and the polyethylene project since 2014. See Industrial Info's project reports for more information on the ethylene unit and the polyethylene unit. Both units are expected to reach full rates in the fourth quarter of 2017, DowDuPont said.
More Gulf Coast expansions and additions are planned as part of DowDuPont's next phase of growth. Additional projects extend U.S. growth investments by more than $1.5 billion, for a total of more than $12 billion over a 10-year period, the company said in May. For more information, see Industrial Info's April 28, 2017, article - Dow Chemical Turns Focus to Incrementals in Wake of Gulf Coast, Saudi Build-Ups.
As part of the company's next wave of growth investments, the Freeport ethylene unit will be expanded to 2 million metric tons, making it the world's largest ethylene facility. The Freeport polyethylene (PE) production unit is the first of four derivative units that DowDuPont is developing at its sites in Louisiana and Texas. The polyethylene resins are used in multiple types of flexible food and industrial packaging applications. Dow is expected to complete construction of a 500,000-to-550,000-metric-T/yr low-density polyethylene (LDPE) plant in December - two months later than originally scheduled - at its Plaquemine, Louisiana plant, as well as a 650,000-metric-T/yr LDPE unit by September 2018 in Freeport. See Industrial's Info's reports on the Freeport and Plaquemine projects and September 22, 2017, article - DowDuPont Reaches Key Gulf Coast Milestones, More to Come for more information.
For the third quarter of this year, DowDuPont reported earnings of $514 million, including $180 million in charges tied to its merger restructuring. The company expects around $2 billion in restructuring charges, with as much as $975 million going toward severance payments and related benefits costs. The three-way split is on track to be completed by August 2019, Breen said.
"Our operating-earnings increase was the result of broad-based demand growth in most of our core end-markets and disciplined margin management, which more than offset several headwinds, from multiple hurricanes to higher feedstock costs," Breen noted. "Going forward, we will remain focused on executing our $3 billion cost-synergy commitment and advancing preparations to create three focused growth companies."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
In the U.S. Midwest, DowDuPont plans to find a buyer for its cellulosic ethanol biorefinery in Nevada, Iowa. DowDuPont and subsidiary DuPont Pioneer (Johnston, Iowa) opened the $225 million Johnston Plant Genetics R&D (research and development) facility in 2015. The plant was intended to be the world's largest producer of cellulosic ethanol created from stover, the material left over after harvesting corn and soybeans. DowDuPont has shuttered operations and laid off at least 90 workers. For more information, see Industrial Info's report on the Johnston plant.
The biorefinery closure was part of the company's third-quarter earnings announcement on November 2. DowDuPont will cut its global workforce by 5 to 7%, suspend operations at select buildings and plants, and centralize purchasing.
"It's just not going to be core to our future," said Ed Breen, chief executive officer, in a press release.
The cost-savings push comes as Dow Chemical Company (Midland, Michigan) and E.I. du Pont de Nemours and Company (DuPont) (Wilmington, Delaware), whose $130 billion mega-merger closed August 31, seek to separate into three independent, publicly traded units focused on agriculture, materials and specialty products. For more information, see Industrial Info's September 5, 2017, article - After Merger, What's Next for DowDuPont?
Of the $3.5 billion in DowDuPont projects under construction globally, Industrial Info is tracking $1.9 billion in project activity in North America - nearly all in the U.S. - and roughly 75% of which can be found in the Chemical Processing, Metals & Minerals and Pharmaceutical & Biotech industries. Of the U.S. investments, Louisiana and Texas dominate, with six projects valued at just more than $1.7 billion.
In September, DowDuPont started up two key petrochemical-processing units at its operations in Freeport, Texas: its integrated 1.5 million-metric-ton-per-year (T/yr) ethylene production facility and its 400,000-metric-T/yr ELITE enhanced polyethylene production facility. Industrial Info has tracked the ethylene unit project since 2011 and the polyethylene project since 2014. See Industrial Info's project reports for more information on the ethylene unit and the polyethylene unit. Both units are expected to reach full rates in the fourth quarter of 2017, DowDuPont said.
More Gulf Coast expansions and additions are planned as part of DowDuPont's next phase of growth. Additional projects extend U.S. growth investments by more than $1.5 billion, for a total of more than $12 billion over a 10-year period, the company said in May. For more information, see Industrial Info's April 28, 2017, article - Dow Chemical Turns Focus to Incrementals in Wake of Gulf Coast, Saudi Build-Ups.
As part of the company's next wave of growth investments, the Freeport ethylene unit will be expanded to 2 million metric tons, making it the world's largest ethylene facility. The Freeport polyethylene (PE) production unit is the first of four derivative units that DowDuPont is developing at its sites in Louisiana and Texas. The polyethylene resins are used in multiple types of flexible food and industrial packaging applications. Dow is expected to complete construction of a 500,000-to-550,000-metric-T/yr low-density polyethylene (LDPE) plant in December - two months later than originally scheduled - at its Plaquemine, Louisiana plant, as well as a 650,000-metric-T/yr LDPE unit by September 2018 in Freeport. See Industrial's Info's reports on the Freeport and Plaquemine projects and September 22, 2017, article - DowDuPont Reaches Key Gulf Coast Milestones, More to Come for more information.
For the third quarter of this year, DowDuPont reported earnings of $514 million, including $180 million in charges tied to its merger restructuring. The company expects around $2 billion in restructuring charges, with as much as $975 million going toward severance payments and related benefits costs. The three-way split is on track to be completed by August 2019, Breen said.
"Our operating-earnings increase was the result of broad-based demand growth in most of our core end-markets and disciplined margin management, which more than offset several headwinds, from multiple hurricanes to higher feedstock costs," Breen noted. "Going forward, we will remain focused on executing our $3 billion cost-synergy commitment and advancing preparations to create three focused growth companies."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
